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Total bitcoin market capitalization shows that the market is still plagued by fear, uncertainty, and doubt. Despite this, over 60% of Dogecoin holders are profitable, per CoinMarketCap data, in the midst of the current dip.
The market has recovered in some aspects, albeit not fully, and investors are feeling confident about Dogecoin now than in recent days.
An overbought relative strength index (RSI) suggests a possible market drop. Despite this, in the following few days, we should see a price that is above $0.1090.
In addition to being bullish on shorter timeframes, the memecoin is also quite robust on longer ones. CoinGecko reports that the coin has been rising in value significantly over the past week or two.
The Launch of SpaceX’s DOGE-1 mission, scheduled on December 22 this year according to NASA’s website, is one event that could alter the pricing even more.
To add more, there are reports on Twitter that Ethereum co-founder Vitalik Buterin and Elon Musk will work together to enhance the DOGE network.
Bullish On The Memecoin, But Proceed With Caution
What will happen to DOGE when the number of positive indicators increase? Will it continue to rise or fall with the rest of the market?
As of the time of writing, all of the top 10 cryptocurrencies are rising, with DOGE marking an incredible 37% weekly increase.
How does this compare in the graph? Well, DOGE is currently trading in a range between $0.1034 and $0.1090, with a likely breakout at the 50 Fibonacci level, which sits at $0.1090.
As the RSI readings are in overbought zone, a correction phase may follow the breach in the intermediate term.
On a 4-hour timeframe, this is more evident as recent candles have longer wicks, a hint of an approaching corrective phase.
If the pullback occurs, the existing support at $0.0931 is likely to resist bearish sentiment. With the Bollinger Band supporting the present price action, however, this correction may be unlikely.
Dogecoin: A Solid Buying Opportunity
Nonetheless, RSI levels should continue to be examined because they can prolong DOGE’s position above the 61.80 Fib level.
We anticipate the $0.1090 resistance to be broken during the coming few days.
Speculators and investors should strongly consider DOGE as a purchase opportunity. As the launch date of the DOGE-1 satellite approaches and reports concerning Buterin and Musk’s upgrading plan for DOGE continue to circulate, we should expect positive sentiment to increase daily.
In the coming weeks, we can anticipate a further rally as the market recovers.
DOGE total market cap at $13.5 billion on the daily chart | Featured image from Coin Edition, Chart: TradingView.com
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.